Ajay S. Gor

An Eoq Model For Progressive Payment Scheme Under Dcf Approach

An attempt is made to formulate optimal ordering policies for the retailer when the supplier offers progressive credit periods to settle the account. We define progressive credit periods as follows: If the retailer settles the outstanding amount by M, the supplier does not charge any interest. If the retailer pays after M but before N(M Ic1). The objective function to be optimized is considered as present value of all future cash-out-flows. An algorithm is given to find the flow of optimal ordering policy. Analytic proofs are discussed to study the effect of various parameters on an objective function.

Optimal pricing and ordering policy for an integrated inventory model with quadratic demand when trade credit linked to order quantity

Purpose – The purpose of this paper is to study integrated inventory system and pricing and ordering strategy for vendor‐buyer supply chain system. Here, the vendor offers a trade credit to the buyer when the buyers order quantity exceeds a given pre‐specified quantity. Therefore, to incorporate the concept of vendor‐buyer integration and trade credit linked, the authors analyze the model to determine the optimal strategy for an integrated vendor‐buyer inventory system under the condition of credit linked to the order quantity when demand is quadratic.Design/methodology/approach – A mathematical model for integrated inventory system is developed when demand rate is increasing function of the time and decreasing function of the retail price. By analyzing the total channel profit function, the authors developed some useful results to characterize the optimal solution and provide an iterative algorithm to find the retail price, buyers order quantity and the number of shipments per production run from the v...

An integrated economic lot-size model for vendor-buyer inventory system when input is random

An integrated strategy is discussed for both vendor and buyer when the input is random. It is shown numerically that the cooperative approach is beneficial to reduce the cost when compared with an independent decision by both the parties. Though the integrated total cost decreases, the buyers cost increases due to random input in his inventory. To encourage the buyer to order a large quantity, a trade credit is offered by the vendor to the buyer to settle the account. A conciliation factor is suggested to share the benefits.

Determination of optimal ordering and transfer policy for deteriorating inventory system when demand is quadratic

Abstract In this article, an integrated model is proposed to determine the optimal procurement quantity and the number of transshipments per order from the warehouse to the display area when demand is increasing with time. It is assumed that display area has floor constraint. The items in inventory system deteriorate at a constant rate. The aim is to maximize the total profit per time unit of the retailer. The algorithms are developed to find the optimal strategy for the retailer. The numerical examples are given to illustrate the models developed and sensitivity analysis is carried out.

Joint optimal production-inventory model with imperfect production processes and varying deterioration rate in buoyant market

In this research paper, an inventory model is developed that jointly optimises cost of manufacturer and retailer under buoyant market condition. Inventory in the system at all the stages, that is, raw material, finished goods at manufacturers end and finished goods at retailers end deteriorate at different rates. Proposed model also considers imperfect production processes. Partial backlogging is allowed only at the retailers end. Model considers quadratically increasing demand to reflect the buoyant market condition. Model analytically establishes percentage gain by using integrated policy over independent decisions taken by manufacturer and retailer. At the end, a numerical example is given to illustrate theoretical results obtained. Sensitivity analysis is also carried out to validate theoretical findings.

Optimal unit price and credit period for price sensitive demand and random supply

In this study, the authors develop a supplier-retailer optimal integrated strategy where the retailers demand is price sensitive and the suppliers supply is random. It is assumed that the suppliers supply follows a normal distribution and the supplier may offer credit period to the retailer. The expected profit is maximised with respect to the unit price charged and the credit period offered by the supplier. The computational steps are provided to obtain the suppliers and the retailers decision variables under individual (non-cooperative) as well as joint (cooperative) strategies. The sensitivity analysis of the parameters is carried out using a numerical example. The authors observe that it is beneficial to consider negotiating the optimal pricing and trade credit policies.

Single vendor and multiple buyers integrated inventory system when demand is quadratic

In this research paper, an integrated inventory policy for single vendor and multiple buyers is developed. The demand of a product is assumed to be quadratic. A numerical example is shown to validate the results of the proposed development. It is established numerically that the integrated approach results in significant decrease in the total cost compared with the independent decision approach by all the buyers. The sensitivity analysis is carried out for all the parameters. To settle beneficial sharing, a negotiation factor is incorporated.

An Integrated Approach for Optimal Unit Price and Credit Period for Deteriorating Inventory System when the Buyer's Demand is Price Sensitive

ABSTRACT In this paper, an attempt is made to develop the vendor – buyer integrated strategy when the buyers demand is price sensitive, units in buyers inventory system is subject to constant rate of deterioration and vendor may offer credit period to the buyer. The unit price charged by the vendor and the credit period offered by the vendor to the buyer are decision variables. The objective function is to maximize the buyers and the vendors profit. The concept of no credit is taken as a yardstick in the analysis. The computational steps are suggested for obtaining the vendors and the buyers decision variables under individual (non-cooperative) as well as joint (cooperative) strategies. The sensitivity analysis of the parameters is carried out using a numerical example.